Expert Tips for Buying Property at Auction in Brisbane
Buying property at auction is an emotional experience. You arrive at the address and the street is buzzing with excited families and serious investors (I guess these are my competitors.) Your heart is pounding: a combination of excitement, stress and anxiety. Sales agents are hovering (Why are there so many?). Small kids run through the crowd (Who brings kids to an auction?)…your internal monologue is in overdrive…
As the Brisbane market begins to heat up more and more properties are being sold at auction. So whether you love auctions or hate them, you are going to have to get used to buying property at auction in Brisbane!
As experienced auction bidders and buyers agents, we have prepared some helpful tips to make the experience of bidding at auction in Brisbane less intimidating.
Preparation is the key to buying a property at auction in Brisbane
One of the advantages of buying a property at auction in Brisbane is that buyers usually have ample time (generally four weeks) to conduct their due diligence. Buyers should use their time wisely:
- Talk to the sales agent and request a list of comparable sales. Most agents will be happy to share this information and it may give you some idea about their price expectations.
- Review all recent sales in the area. Convince yourself about what the property is worth.
- Attend several auctions in the area (preferably with the same auctioneer). Register for these auctions to familiarise yourself with the process – you don’t have to bid!
- Obtain a contact of sale from the agent. Clarify any special conditions. Remember that deposit amounts and settlement periods can be negotiated prior to auction.
- Speak to your solicitor to have the contract reviewed and to discuss whether any specific searches should be completed.
- Make sure your finance approval is in place and check whether your bank needs to perform a valuation of the property prior to auction.
- Organise a building and pest inspection well in advance of auction day.
What to do on the day to buy a property at auction in Brisbane?
- Chill the champagne – you will need this whether you are successful or not.
- Set your maximum bid – and stick to it!
- Arrive early to avoid rushing and stressing even before the auction begins. Remember that you have to register before you can bid. Don’t forget photo identification.
- Be brave! Remember, you are prepared, you have all the information you need which puts you well ahead of an average bidder.
- Don’t be afraid to open the bidding. Start the bidding low (within reason), and slowly but confidently increase your bids. Speak loudly and clearly so that the auctioneer, and other bidders, can hear you.
- Open the champagne – congratulations or commiserations! At least the auction process is over!
For more guidance on buying a property at auction from the Real Estate Institute of Queensland visit REIQ.
If you still do not feel confident buying a property at auction in Brisbane, it is worth employing a buyer’s agent to bid on your behalf. Buyer’s agents attend auctions regularly, they are very familiar with the process and are likely to have good strategies to use on auction day. Your Property Hound offers an auction bidding service to assist purchasers to buy property at auction in Brisbane and bid on your behalf. For more information on Your Property Hound’s Real Estate Bidding Service in Brisbane click here.